Offshore banking and investing is not littered with money laundering criminals, fraudsters, and tax evaders as many governments will have you believe. In respect to these types of crimes the reality is that there is infinitely more criminal activity onshore within their countries then there is offshore.
There is a huge difference between those who bank and invest offshore for legitimate reasons and those who do so for illicit and criminal reasons.
Unfortunately, because of the explicit efforts of the governments of the G7 nations, many people believe that this difference is slight to nonexistent. Not true I tell you. Seek out the facts, and the truth will be revealed.
Placing money and assets offshore is not now and will likely never ever be an illegal activity.
The truth is that offshore banking and investing can be most beneficial to almost anyone. The vast majority of individuals and companies that legitimately place money and assets offshore are fine upright law abiding people.
I guess part of the continuing challenge is that the word ‘offshore’ in the financial sense is synonymous in many people’s minds with tax savings. In many cases this is true albeit more so in the past then in today’s environment.
In the current environment, the tax saving advantages of the offshore world are mostly only available to a few people and institutions who are usually expatriates, non-resident in a high taxation country and with tax liability in a country where taxation is low or even non-existent. There are, however, many more real benefits available to those who choose to open an offshore bank or investment account.
The asset protection benefits, personal privacy advantages and the potential to access better account structures and services are available to the majority of people and institutions when they choose to bank or invest offshore.
Americans, British, Canadians and Europeans can potentially benefit in one way or another from opening an offshore bank or investment account.
However, placing assets offshore without informing the relevant tax authorities in your country of residence or citizenship can be illegal. The advice of a qualified attorney or independent financial adviser should always be sought before committing assets offshore.
The Bahamas for example, like many offshore jurisdictions today, is heavily regulated to protect investors and to prevent money laundering and terrorist financing. The increased regulatory environment has actually provided companies and individuals who bank and invest offshore in The Bahamas a greater degree of confidence and security.
In The Bahamas they have strict guidelines covering maintenance of client privacy which can further afford those seeking personal and asset protection with assurance that their identity and transactions will remain confidential. When it comes to protecting assets from potential unfair litigation, offshore structures like bank and investments accounts, trusts and foundations are often used in association with an offshore International Business Corporation (IBC) or an offshore Private Trust Company (PTC).
Another significant advantage of an offshore bank or investment account is the fact that such structures are usually far more flexible and accessible, pay better interest rates, often have lower charges and can offer those who regularly travel for work or pleasure the flexibility they need from a bank account through which they can transact in multiple currencies and to which they can have access from anywhere in the world.
Therefore, as you can see, the truth about offshore banking and investing is that it can offer many real benefits to many real people!